Alphabet Inc. (NASDAQ: GOOGL), Google’s parent company announced Monday after market closed financial results for the quarter and fiscal year ended December 31, 2019. The report showed disappointing earnings, which caused the stock to fall more than 2% on Tuesday.
According to the report, Search and other Google properties continue to drive great results, with total revenues in 2019 of $98 billion and strong growth. I’m also really pleased with two of our newer growth areas.
“Our investments in deep computer science, including artificial intelligence, ambient computing and cloud computing, provide a strong base for continued growth and new opportunities across Alphabet,” said Sundar Pichai, Chief Executive Officer of Alphabet and Google. “I’m really pleased with our continued progress in Search and in building two of our newer growth areas — YouTube, already at $15 billion in annual ad revenue, and Cloud, which is now on a $10 billion revenue run rate."
YouTube reached $15 billion in ads revenues in 2019, growing at 36% compared with 2018. And it now has over 20 million Music and Premium paid subscribers, and over 2 million YouTube TV paid subscribers -- ending 2019 at a $3 billion annual run rate in YouTube subscriptions and other non-advertising revenues. Google Cloud ended 2019 at a more than $10 billion run rate, up 53% year-on-year driven by significant growth in GCP. The growth rate of GCP was meaningfully higher than that of Cloud overall and GCP’s growth rate accelerated from 2018 to 2019.
“In 2019 we again delivered strong revenue growth, with revenues of $162 billion, up 18% year over year and up 20% on a constant currency basis,” said Ruth Porat, Chief Financial Officer of Alphabet and Google. “To provide further insight into our business and the opportunities ahead, we’re now disclosing our revenue on a more granular basis, including for Search, YouTube ads and Cloud.”